3 Stocks Primed for a Short Squeeze

Let the bears' folly line your pockets in coming weeks

GameStop (GME)

Click to Enlarge Game retailer GameStop (GME) has been hit lately by what’s likely a “sell the news” situation — traders are stepping away from GME just as the holiday season releases are hitting the street, including new game consoles from both Microsoft (MSFT) and Sony (SNE).

The shorts were piling into GameStop stock ahead of the drop, meaning the shares were “pre-sold,” or discounted for this decline, and that there is a group of buyers (by way of having to cover their shorts) that will step in to help provide support.

This is one of the situations where the shorts might have been right (yes, they’re not always wrong), but the pending short squeeze still will help rally GME higher.